State Tax System | Welcome to Nashville Berkshire Woodmont

TAX & LICENSE / STATE TAX SYSTEM

Newcomers to Tennessee will be pleased to learn that the state is one of the few that does not impose a personal income tax on wages or salaries. The income tax does apply to most income from stocks, bonds, and notes receivable. Certain income is exempt, so consult the Department of Revenue for complete information or answers to your specific questions:

Tennessee Department of Revenue
Taxpayer Services
500 Deaderick Street
Nashville 615-253-0600
https://www.tn.gov/revenue

Pensions, Social Security & IRAs
Since the Tennessee income tax does not apply to salaries and wages, items of income such as social security and pension income are not subject to state tax. Income from stocks and bonds of pension trusts and profit sharing trusts that are exempt from federal income taxation are also exempt from state tax. This includes such accounts as IRAs and distributions from IRA accounts.

Sales & Use Taxes
Tennessee state sales and use taxes are both imposed at a rate of 7 percent. Local jurisdictions tend to raise this rate by an average of 2.25 percent. Food is taxed at 5 percent, but candy, dietary supplements and prepared food are taxed at the increased 7 percent rate. Nearly 75 percent of the sales and use tax dollars support education. Among the other major state taxes is petroleum taxes, corporate franchise taxes, and excise taxes.

Property Tax
Levied by the county and municipal governments, the property tax rates apply to each $100 of assessed value of property. The assessment ratio applied to residential property is 25 percent. Most municipalities and some special school districts impose additional tax levies. For answers to your questions or specific tax rates, contact:

County Tax Assessors

Cheatham County
615-792-5371
https://www.cheathamcountytn.gov/

Coffee County
931-723-5126
www.coffeecountytn.org

Davidson/Nashville
615-862-6080
https://www.padctn.org/

Dickson County
615-789-7015
https://www.dicksoncountytn.gov/

Franklin County
931-967-2905
https://www.franklincotn.us/

Madison County
731-423-6063
https://www.madisoncountytn.gov/

Maury County
931-375-4001
https://www.maurycounty-tn.gov/

Montgomery County
931-648-5709
https://mcgtn.org/

Robertson County
615-384-4311
https://www.robertsoncountytn.org/

Rutherford County
615-898-7750
www.rutherfordcountytn.gov

Sumner County
615-452-2412
https://www.sumnertn.org/

Williamson County
615-790-5708
www.williamsoncounty-tn.gov